How to AGRESSIVELY Trade Forex

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How to AGRESSIVELY Trade Forex

In this week’s edition of our newsletter, I want to show you how to aggressively trade Forex with a 20 pip profit target. This is a very reasonable target that occurs most days, day in and day out.

The first thing I do is to go to ForexTicket.com to review which pairs are currently showing the most volatility.

One of my preferred pairs for scalping is the British Pound / Yen (GBPJPY), especially at the 7:30am London open.

By using my Hawkeye Gearbox indicator I can easily determine that currently, the best two time-frames to use are 162 ticks and 384 ticks.

So, once I have these charts up, I add two of my indicators: Hawkeye Volume and Trend.

Hawkeye Volume provides the green, red, and white bars on the price, showing me whether the market is being accumulated, distributed, or if there is no demand at all.

This is an amazing leading indicator which literally signals a price movement prior to it happening!

The Hawkeye Trend indicator are the dots which give me a clear indication of the market trend and momentum.

So, let’s start.

Fatman GBPJPYFirst of all, I take a look at my Hawkeye Fatman indicator, displaying the Pound and the Yen at the same time, 7:30am in London.

You can see they are in opposition to each other.

The Pound being brown, and the magenta being the Yen.

So, this is showing me straight-away that the Yen is showing strength against the Pound.

I then go over to my charts and have a look at the double-time volume.

Double-time volume is on the bottom of the chart below with the cyan arrow.

gbpjpy yellow

And you can see on the 384 tick chart (above), the double timeframe is showing me there’s red selling going on, and on the 162 tick chart (below), you can see that it’s neutral, which is just fine.

gbpjpy blue

It’s telling me that there is no defined direction yet on the double time frame.

However, if you look at the Hawkeye Volume on the price, you can see that it has already turned red.

But, the most important thing I’m looking at is the actual trend dot, and you can see that the trend dots, both on the 384 and the 162 chart have started to roll over and point downwards.

So, with my volumes leading the way, showing me the bias is to the downside, I enter a short based on the 162 tick chart with confirmation from the 384 tick chart.

And, as you can see, by putting the Hawkeye Grabba on (the horizontal lines), it comes down to the 173.19 area, hits 20 pips, and I take my profit.

And that’s it!

I’m done for the day with my scalp.

Now, one of the things I try to teach is that it is far better to put a larger position on and go for a shorter trend run then it is to put a smaller position on and go for a longer trend run.

And, if you can hit 20 pips, day in and day out, even on one contract, that will give you the confidence to scale up to 3, 5, 8, 10, or more.

Then, you’re starting to make real capital wealth.

One other thing I would like to emphasize is how I manage these scalps.

Once prices have moved 10 ticks, I move my stop up to break even. Also, once prices get close to 20 ticks, I move my stop to lock in 10 ticks of profit. That way, I’m always taking money out of the market.

So, I hope you have enjoyed this brief example of how to scalp aggressively.

Nigel Hawkes

[The red and cyan arrows are for illustration only and are not part of the software]

 

Want to profit from Volume? Here’s how.

Apple is the most widely held stock in America.

If you look at the daily chart, you can see it has been in an uptrend for quite some time. There was a brief pull-back in late June, and then, it continued upwards on declining volume.

Apple Daily

However, notice throughout the pullback, it didn’t break the Stop or Crash Barrier indicators (indicated by the green crosses and the solid green line).

Now, notice the point where I’ve marked the chart with a cyan-colored arrow. You can see that when prices began to rise, volume was increasing and how it pushed the market up.

Next, see the large magenta-colored bar on July 8th? That tells us the market will most likely go into a pause (in fact, this Widebar indicator is accurate about 80% of the time).

As I write this weekly newsletter (on Monday, July 14th), you can see that the current bar is pushing out above the magenta bar.

But please remember, if you’re trading is based on daily and weekly charts, I don’t consider there to be a breakout until ALL of the current bar is above the support or resistance.

At the moment, the current bar is straddling the resistance, and you can see this if you draw a line off the top of the magenta bar.

So, I would still say that this market is currently in congestion on neutral volume.

Now, if we look at the weekly chart, you can see that Apple is in a power trend up.

Apple Weekly Chart

And, you’ll also notice, this is happening on green buying volume, with the Hawkeye trend dots moving up in a very orderly manner.

So, all of this points to a market that is being accumulated.

But of course, if you look at lower time-frames (like the daily), you’ll see the whip-lash of the vibration, but it holds firm in this trend.

It appears that this trend will continue its way up, providing the overall index goes up.

So, what is the Hawkeye perspective on Apple?

Apple is in an uptrend, it’s in congestion on the daily, working its way out of the wide bar range, which occurred on the 8th of July, but is in total harmony with the weekly chart.

Good trading!

Nigel Hawkes

 

[The red and cyan arrows are for illustration only and are not part of the software]

 

Hawkeye Identifies HUGE Market Move!

We are looking for huge moves in grains now. Look at the following charts of the grains. Wheat is at multi-year lows, along with Corn. Do remember, the PEDv outbreak has killed millions of US hogs and they eat corn, so there is lots of supply

Chart 1 –  Wheat Daily Chart

wheat daily

Take a look at the Wheat Daily Chart above. Of course Hawkeye volume picked up the professional selling (indicated by the red arrow).

Chart 2 – Wheat Weekly Chart

wheat weekly

This selling is confirmed by the volume chart on the Weekly Wheat Chart (indicated by the red arrow). What trends!

[The red arrows are for illustration only and are not part of the software]

Hawkeye Perspective

Have a look as well at Hawkeye on the Soy complex. This year has been a near perfect growing season – ample rains and sun.  You will see that Hawkeye Volume is very bearish –  as it is of all the grain complex.

As a note: feeder cattle and live cattle have been a belter of a trend. Be careful, it looks like tops are being put in.

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